(April 2019 –
September 2019)
Group Brands up +6.1% in the first half
Continued strength in underlying market trends
Regulatory News:
Rémy Cointreau (Paris:RCO) achieved sales of €523.9 million in
the first half of its 2019/20 fiscal year, down 0.6%. This decline
can be explained by the voluntary withdrawal of the Group from
certain Partner Brands (-71.2%) while Group Brands sales grew by
6.1% over the same period. Currency effects were favourable
(+3.0%) over the half-year.
In organic terms (at constant exchange rates and scope of
consolidation), Group Brands saw growth of 2.8% over the
period: The House of Rémy-Martin grew by 2.1%*.
This performance, limited by situational factors (a fall in tourism
in Hong Kong and slow stock replenishment by retailers in the
United States), masks continued steady demand for cognacs, in
particular in China. The Liqueurs & Spirits division
enjoyed strong growth over the half-year (+4.9%*). After disruption
at the beginning of year due to changes in the distribution network
in Europe, sales benefited from a general recovery in the second
quarter and remarkable growth for Cointreau in the United States in
particular.
Group Brands experienced growth across all regions
(+2.8%*), with a strong performance in Europe, Middle East
and Africa (+7.1%), led by the United Kingdom and Africa. Asia
Pacific (+1.4%) and the Americas (+1.8%) had a slower start to the
year for the reasons explained above.
Breakdown of sales by division:
6 months
6 months
Change
(€m)
to 30/09/19 at
31/12/2014
to 30/09/2018 at
31/12/2014
Reported
Organic(*) at
31/12/2014
House of Rémy Martin
379.6
359.6
5.6%
2.1%
Liqueurs & Spirits
131.2
121.9
7.6%
4.9%
Subtotal: Group Brands
510.8
481.5
6.1%
2.8%
Partner Brands
13.1
45.5
(71.2%)
(71.4%)
Total
523.9
527.0
(0.6%)
(3.6%)
House of Rémy Martin The House of Rémy Martin
continued to grow during the first half (+2.1% in organic
terms).
It nonetheless suffered from the fall in tourism in Hong Kong
and from slower than anticipated stock replenishment by retailers
in the United States. This performance masks continued steady
demand for our cognacs and an excellent Mid-Autumn Festival in
China for all the House’s qualities.
The House brands unveiled new creative initiatives during the
first half: LOUIS XIII launched a limited edition “Black
Pearl AHD”, in tribute to André Hériard Dubreuil, the former
visionary President of the House of Rémy Martin, born 100 years
ago. The brand also opened a pop-up boutique at Changi Airport
(Singapore) where clients could enjoy a multisensory experience,
capturing the essence of LOUIS XIII. At the beginning of September,
Rémy Martin innovated with the launch of “Tercet”. An
inspiration from three artisans, our cellar master Baptiste
Loiseau, our master distiller Jean-Marie Bernard and wine producer
Francis Nadeau, this new cognac quality will be initially launched
in the United States and in China.
Liqueurs & Spirits
The Liqueurs & Spirits division experienced strong growth in
the first half (+4.9% in organic terms), backed by most of its
brands.
The House of Cointreau enjoyed an excellent first half,
thanks to continued strength in the United States and more
favourable trends in its historic European markets (particularly in
France and Germany). Sales at the House of Metaxa declined
over the period, primarily due to the change of distributors in
Central Europe and Germany. However, the strong performance of its
“12 Stars” quality in its key markets this summer is encouraging
for the brand’s growth outlook. Mount Gay and St-Rémy
enjoyed a strong start to the year, thanks to their historic
markets, the United States and Canada, respectively. The
Botanist continued its double-digit growth, led by the
expansion of the brand in the United States and in Travel Retail.
Finally, the Whisky division benefited from the success of
the single malt category, specifically in Europe and in Asia.
Partner Brands As expected, the decline in Partner Brands
sales accelerated (-71.4% in organic terms) with the termination of
large distribution contracts in the Czech Republic, Slovakia and
the United States.
Outlook 2019/20 Rémy Cointreau anticipates that 2019/20
will unfold within the framework of the Group’s medium-term
objectives. As a reminder, the year will include the termination of
distribution contracts for Partner Brands (in the Czech Republic,
Slovakia and United States), which are estimated to have an impact
of €56 million on sales and €5 million on Current Operating
Profits.
Appendices:
Sales and organic growth by division
Sales in the first-quarter 2019-20 (April-June 2019)
€m
Reported 19-20
Currency 19-20
Organic 19-20
(*)
Reported 18-19
Change: Reported
Change: Organic
(*)
A
B
C
A/C-1
B/C-1
House of Rémy Martin
161.1
6.0
155.1
147.0
9.6%
5.5%
Liqueurs & Spirits
55.3
1.5
53.9
55.3
0.1%
(2.6%)
Subtotal: Group Brands
216.5
7.5
209.0
202.3
7.0%
3.3%
Partner Brands
6.7
0.0
6.7
20.0
(66.4%)
(66.6%)
Total
223.2
7.5
215.6
222.2
0.4%
(3.0%)
Sales in the second-quarter 2019-20 (July-September
2019)
€m
Reported 19-20
Currency 19-20
Organic 19-20
(*)
Reported 18-19
Change: Reported
Change: Organic
(*)
A
B
C
A/C-1
B/C-1
House of Rémy Martin
218.4
6.4
212.1
212.6
2.7%
(0.3%)
Liqueurs & Spirits
75.9
1.8
74.1
66.6
13.9%
11.2%
Subtotal: Group Brands
294.3
8.1
286.2
279.3
5.4%
2.5%
Partner Brands
6.4
0.1
6.3
25.5
(74.9%)
(75.2%)
Total
300.7
8.2
292.5
304.7
(1.3%)
(4.0%)
Sales in the first half 2019-20 (April-September
2019)
€m
Reported 19-20
Currency 19-20
Organic 19-20
(*)
Reported 18-19
Change: Reported
Change: Organic
(*)
A
B
C
A/C-1
B/C-1
House of Rémy Martin
379.6
12.4
367.2
359.6
5.6%
2.1%
Liqueurs & Spirits
131.2
3.2
128.0
121.9
7.6%
4.9%
Subtotal: Group Brands
510.8
15.6
495.1
481.5
6.1%
2.8%
Partner Brands
13.1
0.1
13.0
45.5
(71.2%)
(71.4%)
Total
523.9
15.7
508.1
527.0
(0.6%)
(3.6%)
Definitions of alternative performance
indicators
Rémy Cointreau’s management process is based on the following
alternative performance indicators, selected for planning and
reporting purposes. The Group’s management considers that these
indicators provide users of the financial statements with useful
additional information for understanding the Group’s performance.
These alternative performance indicators should be considered as
supplementing those included in the consolidated financial
statements and the resulting movements.
Organic sales growth Organic growth is calculated
excluding the impact of exchange rate fluctuations, acquisitions
and disposals.
The impact of exchange rates is calculated by converting sales
for the current financial year using average exchange rates from
the previous financial year.
For acquisitions in the current financial year, sales of
acquired entities are not included in organic growth calculations.
For acquisitions in the previous financial year, sales of acquired
entities are included in the previous financial year but are only
included in organic growth calculations for the current year with
effect from the anniversary date of the acquisition.
For significant disposals, data is post-application of IFRS 5,
which systematically reclassifies the sales of sold entities in
“Net profit from activities sold or to be sold” for the current and
previous financial year.
This indicator serves to focus on Group performance across both
financial years, which local management is more directly capable of
influencing.
(*) Organic growth is calculated assuming constant exchange
rates and consolidation scope
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191017005963/en/
Laetitia Delaye – +33 (0)7 87 25 36 01
Remy Cointreau (EU:RCO)
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